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Do Safety Nets Promote Technology Adoption? Panel data evidence from rural Ethiopia

Author

Listed:
  • Alem, Yonas

    () (School of Business, Economics and Law)

  • Broussard, Nzinga H.

    () (The Ohio State University)

Abstract

We use panel data from rural Ethiopia to investigate if participation in a safety net program enhances fertilizer adoption. Using a difference-in-difference estimator and inverse propensity score weighting we find that participation in Ethiopia’s food-for-work program increased fertilizer adoption. Results also indicate that the likelihood of adopting and the intensity of fertilizer usage increased with livestock holdings for food-for-work-participant households providing some evidence that the intervention helped asset-rich farm households more than asset-poor households. We find no significant effects of free distribution on fertilizer adoption or intensification. Our results are consistent with the hypothesis that safety nets can be viewed as mechanisms that allow households to take on more risk to pursue higher profits. The paper highlights important policy implications related to the inter-related dynamics of safety nets and extension services that aim at promoting productivity enhancing modern agricultural technologies.

Suggested Citation

  • Alem, Yonas & Broussard, Nzinga H., 2013. "Do Safety Nets Promote Technology Adoption? Panel data evidence from rural Ethiopia," Working Papers in Economics 556, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0556
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    File URL: http://hdl.handle.net/2077/32449
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    References listed on IDEAS

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    1. Little, Peter D., 2008. "Food Aid Dependency in Northeastern Ethiopia: Myth or Reality?," World Development, Elsevier, vol. 36(5), pages 860-874, May.
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    Cited by:

    1. Sheahan, Megan & Barrett, Christopher B., 2014. "Understanding the agricultural input landscape in Sub-Saharan Africa : recent plot, household, and community-level evidence," Policy Research Working Paper Series 7014, The World Bank.

    More about this item

    Keywords

    Safety Net; Fertilizer Use; Inverse Propensity Score Weighting;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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